In India, capacity additions were initiated to satiate the growing demand for MEG in the high growing PET and packaging industry. Demand for MEG has been witnessing a CAGR of around 9.7% from fiscal year 2005-06 to 2016-17 and there will be a healthy growth rate over the period of 2016-2021.

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Production of MEG over the world had been hit hard by the global depression of 2008-2010, restricting domestic capacity additions after which the industry started its path to recovery and achieved normalcy in the production. However, the upsurge in the polyester fabric industry mandated an incessant supply of MEG which further fuelled its demand.

Polyethylene Terephthalate or PET, is the largest consumer of MEG, accounting for more than half the domestic production of the country. The textile and pesticide industries are other major consumers of MEG in the country and they are expected to witness strong growth in the coming years. The western region of the country is the largest hub of MEG consumption; other regions of the country share approximate similar MEG requirements, which are however, expected to increase in the future.

Reliance Industries Limited, Indian Oil Corporation Limited and India Glycols Limited are the chief MEG manufacturers in the domestic market. Though production has seen a modest growth, it is not enough to meet domestic demand. India's limited domestic production mandates users and distributors to procure MEG through imports. Hence, there is a lucrative opportunity for investors to cater to this demand.